Elevator Pitch
Singapore-listed telecommunication services operator StarHub Ltd. (SRHBF, STH:SP) is currently trading at an undemanding 6.5 times consensus forward FY2019 EV/EBITDA and offers an attractive 6.2% dividend yield, based on its share price of S$1.45 as of August 8, 2019. The stock's cheapness is attributed to multiple headwinds that the company is facing.
StarHub faces serious competition from MVNOs (Mobile Virtual Network Operators) in the mobile segment, and competition could further intensify with the official entry of Australia-based TPG Telecom (TPGTF, TPPTY) into the Singapore mobile market this year.